Telecoms operators battle for businees

Telecoms operators battle for businees

JAKARTA (JP): Telecommunications companies in Indonesia are
facing various challenges to continue and maintain their
business.

PT Satelindo sees the rapid change of information and
telecommunications technology as the main threat currently faced
by any telecommunications operator in the world.

Company president Iwa Sewaka said telecommunications firms
must follow the changes, even after applying the most recent
technology, unless the firms want to lag behind. "New technology
usually offers cheaper costs, so this is very competitive."

He said the second threat was the global trend of strategic
alliances, which would lead to mega alliances. "Probably, there
will be only 10 or 20 telecommunications operators in the world
in the future."

British Telecommunications merged last month with the U.S.
group MCI Communications Corp. NYNEX Corp and Bell Atlantic Corp
also merged last year. Earlier in 1996, SBC Communications Corp
merged with Pacific Telesis Group.

According to Iwa, the third threat was the trend of multimedia
and telecommunications convergence.

"Telecommunications firms have to harmonize their business
following the trends of convergence and global alliance," he
said.

Director of cellular operator PT Telkomsel, Garuda Sugardo,
said that the biggest challenge for service-oriented companies
was to maintain costumers. "Particularly in cellular phones, the
operators have to guarantee the users that they have the
technology to avoid fraud."

Cellphone operators had to establish good billing systems and
customer databases as well as tight validation systems, he said.

President of PT Indosat, Tjahjono Soerjodibroto, said that
telecommunications firms had to anticipate the rapid change of
information and telecommunications technologies. "Technology will
allow several things, including alternative services like voice
over Internet, the establishment of new players and the evolution
of the telecommunications industry."

According to Tjahjono, regulation also plays a very important
role in the telecommunications business.

"We can learn that the trend in telecommunications service is
cheaper costs. But any government in the world has to be wise in
reforming regulation." (icn)